Los Banos Municipal Code Ch. 4 Liquidation Sales

No person in the City shall advertise, notice, or hold out by advertising in newspapers, magazines, periodicals, or otherwise, or by window signs, billboards, radio, or in any other manner whatsoever, that any sale of goods, wares, or merchandise is an insurance, bankrupt, sell out, bankruptcy, bankrupt stock, mortgage, mortgagee's, insolvent, assignee's, executor's administrator's, receiver's, trustee's, pledgee's, lease expiring, removal, retiring, quitting, liquidating, liquidizing, or closing-out sale or other designation, or a sale of goods, wares, or merchandise damaged by fire, smoke, or water, whether the sale is so designated or is held under a similar name or other designation in the City, until he or she shall have obtained a special license to conduct such sale from the City Clerk as set forth in this chapter.

The provisions of this section shall apply to all such sales, whether conducted by the owner, his or her agent, a consignee, or otherwise.

(§ 1, Ord. 391, as amended by § 6 Ord. 1161, eff. February 17, 2018)

At least 10 days prior to the commencement of any liquidation sale, as set forth in Section 11-4.01 of this chapter, the person intending to hold such sale shall submit to the City Clerk an application in writing stating the reasons for such sale. Such application shall specify the period of time during which the sale shall continue, which time shall in no case exceed 30 days. A new application and special license shall be procured for each 30 day sale period, or portion thereof. No person shall make any false statement in any such application.

(§§ 2, 3 (b), and 5, Ord. 391, as amended by § 6 Ord. 1161, eff. February 17, 2018)

The application for a license to hold a liquidation sale shall have attached thereto an inventory of all goods, wares, and merchandise on all the premises where such sale is to take place. The inventory shall show the actual purchase price and any other details required by the City Clerk necessary to fully identify the goods, wares, and merchandise to be sold at such sale. No additional goods, wares, or merchandise may be brought in or added to the submitted inventory and offered to the public at such sale.

(§§ 2 and 3 (a), Ord. 391, as amended by § 6 Ord. 1161, eff. February 17, 2018)

The City Clerk shall file the application for a license to hold a liquidation sale and shall endorse on the application the date the special license is granted. The application shall be open to inspection only by the employees of the office of the City Clerk and the Police Department.

(§ 4, Ord. 391, as amended by § 6 Ord. 1161, eff. February 17, 2018)

The license fee for a liquidation sale pursuant to the provisions of this chapter shall be Twenty-Five and No/100ths ($25.00) Dollars, plus Two and No/100ths ($2.00) Dollars for each One Thousand and No/100ths ($1,000.00) Dollars, or fraction thereof, shown on the inventory submitted pursuant to the provisions of Section 11-4.03 of this chapter. Such license fee shall be in addition to any other license fee being paid to the City by the applicant. For the purpose of ascertaining such special license fee, the inventory shall be computed from the total cost (purchase price) of such goods, wares, and merchandise or 60% of the advertised value of such goods, wares, and merchandise, whichever is the larger amount.

(§ 3(a), Ord. 391, as amended by § 6 Ord. 1161, eff. February 17, 2018)

Licenses issued pursuant to the provisions of this chapter shall be valid only for the goods, wares, and merchandise listed on the inventory required by the provisions of Section 11-4.03 of this chapter. Any additions to such inventory shall cause the goods, wares, and merchandise so inventoried to lose their identity, and any such license issued shall cease to apply to the sale of such goods, wares, and merchandise.

(§ 6, Ord. 391, as amended by § 6 Ord. 1161, eff. February 17, 2018)

If there shall be any change in the ownership of the goods, wares, and merchandise listed on the inventory submitted pursuant to the provisions of Section 11-4.03 of this chapter or advertised or noticed for sale, a notice of such change shall immediately be given in writing to the City Clerk, and a new license shall be obtained, using the same procedure as set forth for the original license.

(§ 7, Ord. 391, as amended by § 6 Ord. 1161, eff. February 17, 2018)

Any sale pursuant to the provisions of this chapter shall only be advertised or carried on as an insurance sale by the insurance carrier, a bankruptcy sale by a trustee in bankruptcy, a mortgage sale by a mortgagee, an insolvent sale by a trustee in insolvency, an assignee's sale by an assignee for creditors, an executor's sale by an executor, an administrator's sale by an administrator, a receiver's sale by a receiver, and a trustee's sale by a trustee; provided, however, a person purchasing directly from an insurance carrier, trustee in bankruptcy, mortgagee, trustee in insolvency, assignee for creditors, executor, administrator, receiver, or trustee may advertise, notice, and represent that he or she has so purchased such goods, wares, and merchandise.

No person shall make any false statement in any advertisement or notice of any such sale of goods, wares, and merchandise.

(§§ 5 and 8, Ord. 391, as amended by § 6 Ord. 1161, eff. February 17, 2018)

The provisions of this chapter shall not prevent a merchant from selling his or her regular stock in trade at any sale licensed by the provisions of this chapter, the inventory of which would not cover his or her regular stock in trade; provided, however, such regular stock in trade shall be segregated separately and designated as such by appropriate signs clearly visible to prospective customers and so advertised. The lettering for such advertisements shall not be less than two (2″) inches in height.

(§ 9, Ord. 391, as amended by § 6 Ord. 1161, eff. February 17, 2018)

No sale of goods, wares, or merchandise shall be advertised, noticed, represented, or conducted as a fire sale unless all of such goods, wares, and merchandise to be sold shall have been actually damaged by fire, smoke, or water used in extinguishing a fire.

(§ 10, Ord. 391, as amended by § 6 Ord. 1161, eff. February 17, 2018)

The provisions of this chapter shall not apply to public or court officers, or to any person acting under the direction of State or Federal courts in the course of his or her official duties, or to licensed pawnbrokers selling unredeemed pledges in accordance with law.

(§ 11, Ord. 391, as amended by § 6 Ord. 1161, eff. February 17, 2018)

Any person violating any of the provisions of this chapter shall be deemed guilty of a misdemeanor and, upon conviction, shall be punishable as set forth in Chapter 2 of Title 1 of this Code.

(§ 12, Ord. 391, as amended by § 6 Ord. 1161, eff. February 17, 2018)